Investopedia

1. Broker pairs two orders for same instrument at same price
   • Variations
     • Market opening crosses
     • Market closing crosses
2. FX cross
   • Non-US currencies go direct instead of pivoting over USD

Cross Order

• Stock broker receives matching buy and sell
  • Must offer stock at higher price than bid
    • Regulated market
      • Transparency & fairness
  • If no higher price available
    • Can execute both to match
      • Done OTC (may not be allowed on some exchanges)
• Concerns
  • “paint the tape”
    • Manipulate price by buying and selling amongst themselves